Policy Highlights of the Tax Cuts and Jobs Act

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For individuals and families, the Tax Cuts and Jobs Act:

Lowers individual tax rates for low- and middle-income Americans to Zero, 10%, 12%, 22%, 24%, 32%, and 37% so people can keep more of their hard-earned money.

Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes - from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively.

Continues to allow people to write off the cost of state and local taxes - up to $10,000. Gives individuals and families the ability to deduct property taxes and income - or sales - taxes to best fit their unique circumstances.

Takes action to support more American families by:

Expanding the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children. The tax credit is fully refundable up to $1,400 and begins to phase-out for families making more than $400,000. Parents must provide a child's valid Social Security Number in order to receive this credit.

Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.

Preserving the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their hearts and homes to an adopted child.

For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the current mortgage interest deduction.

For homeowners with new mortgages on a first or second home, the home mortgage interest deduction will be available up to $750,000.

Provides relief for Americans with expensive medical bills by expanding the medical expense deduction for 2017 and 2018 for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent beginning in 2019.

Continues and expands the deduction of charitable contributions so people can continue to donate to their local church, charity, or community organization.

Eliminates Obamacare's individual mandate penalty tax - providing families with much-needed relief and flexibility to buy the health care that's right for them if they choose.

Maintains the Earned Income Tax Credit to provide important tax relief for low-income Americans working to build better lives for themselves.

Improves savings vehicles for education by allowing families to use 529 accounts to save for elementary, secondary, and higher education.

Provides support for graduate students by continuing to exempt the value of reduced tuition from taxes.

Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts (IRAs) so Americans can continue to save for their future.

Increases the exemption amount from the Alternative Minimum Tax (AMT) to reduce the complexity and tax burden for millions of Americans.

Provides immediate relief from the Death Tax by doubling the amount of the current exemption to reduce uncertainty and costs for many family-owned farms and businesses when they pass down their life's work to the next generation.